Morgan Stanley Forecasts Strong Price Appreciation for Chipotle Mexican Grill (NYSE:CMG) Stock

Chipotle Mexican Grill (NYSE:CMG) had its target price increased by analysts at Morgan Stanley from $39.00 to $40.00 in a research note issued on Thursday, October 15th, Benzinga reports. The firm currently has an “equal weight” rating on the restaurant operator’s stock. Morgan Stanley‘s price objective would indicate a potential upside of 27.67% from the stock’s current price.

A number of other equities analysts have also weighed in on CMG. Seaport Research Partners began coverage on shares of Chipotle Mexican Grill in a research note on Wednesday, September 16th. They issued a “neutral” rating on the stock. Citigroup reduced their target price on Chipotle Mexican Grill from $46.00 to $45.00 and set a “buy” rating for the company in a research note on Monday, July 13th. Piper Sandler cut their price objective on shares of Chipotle Mexican Grill from $42.00 to $39.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Guggenheim restated a “neutral” rating and issued a $36.00 target price (up from $35.00) on shares of Chipotle Mexican Grill in a research note on Friday, July 31st. Finally, Stephens decreased their price target on Chipotle Mexican Grill from $40.00 to $38.00 and set an “equal weight” rating for the company in a research report on Thursday, October 15th. Twenty-seven equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, Chipotle Mexican Grill currently has an average rating of “Moderate Buy” and a consensus target price of $42.47.

Chipotle Mexican Grill Stock Up 9.1%

Shares of CMG traded up $2.60 on Thursday, hitting $31.33. The company’s stock had a trading volume of 42,432,740 shares, compared to its average volume of 18,084,094. The firm has a market capitalization of $39.65 billion, a price-to-earnings ratio of 28.74, a P/E/G ratio of 1.67 and a beta of 0.96. Chipotle Mexican Grill has a fifty-two week low of $27.31 and a fifty-two week high of $41.42. The firm’s fifty day moving average price is $33.20 and its 200-day moving average price is $34.21.

Chipotle Mexican Grill (NYSE:CMG) last posted its quarterly earnings data on Wednesday, October 28th. The restaurant operator reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.02). Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%. The firm had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.29 billion. During the same quarter in the previous year, the business posted $0.29 earnings per share. The firm’s quarterly revenue was up 9.6% compared to the same quarter last year. As a group, equities analysts predict that Chipotle Mexican Grill will post 1.14 earnings per share for the current fiscal year.

Insider Activity at Chipotle Mexican Grill

In other Chipotle Mexican Grill news, insider Matthew R. Bush sold 2,675 shares of Chipotle Mexican Grill stock in a transaction on Friday, August 21st. The stock was sold at an average price of $35.75, for a total transaction of $95,631.25. Following the completion of the transaction, the insider owned 21,415 shares in the company, valued at approximately $765,586.25. The trade was a 11.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.45% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Groupama Asset Managment lifted its holdings in Chipotle Mexican Grill by 1.9% during the 4th quarter. Groupama Asset Managment now owns 15,596 shares of the restaurant operator’s stock valued at $568,000 after buying an additional 291 shares in the last quarter. Citizens Financial Group Inc. RI lifted its position in shares of Chipotle Mexican Grill by 2.5% in the 1st quarter. Citizens Financial Group Inc. RI now owns 12,708 shares of the restaurant operator’s stock worth $407,000 after purchasing an additional 311 shares during the period. ANB Bank increased its holdings in shares of Chipotle Mexican Grill by 5.8% in the 1st quarter. ANB Bank now owns 6,317 shares of the restaurant operator’s stock valued at $202,000 after acquiring an additional 349 shares during the period. State of Wyoming raised its holdings in Chipotle Mexican Grill by 10.9% in the first quarter. State of Wyoming now owns 3,759 shares of the restaurant operator’s stock worth $120,000 after purchasing an additional 368 shares in the last quarter. Finally, Valmark Advisers Inc. grew its holdings in Chipotle Mexican Grill by 2.9% in the first quarter. Valmark Advisers Inc. now owns 13,275 shares of the restaurant operator’s stock worth $425,000 after purchasing an additional 377 shares during the last quarter. Institutional investors own 91.30% of the company’s stock.

Chipotle Mexican Grill News Summary

Here are the key news stories impacting Chipotle Mexican Grill this week:

• Positive Sentiment: Third-quarter revenue rose 9.6% to $3.29 billion, in line with expectations, while comparable-restaurant sales increased 2.1% and transactions grew for the third consecutive quarter. Value offers and limited-time menu items helped attract diners. Chipotle beats quarterly sales expectations on resilient demand
• Positive Sentiment: Investors responded favorably to signs of a traffic recovery following earlier food-safety concerns. New menu launches, refreshed loyalty benefits and plans to accelerate technology and menu innovation are supporting the turnaround. Chipotle Sales Beat as New Chicken, Chips Bring Diners Back
• Positive Sentiment: Chipotle opened 84 company-owned restaurants during the quarter, and its loyalty program surpassed 24 million members, providing additional long-term growth and customer-engagement potential. Chipotle: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts maintained bullish ratings, including DA Davidson and BTIG Research at $45 targets and Oppenheimer at a $51 target, implying substantial upside based on the supplied reference price. Oppenheimer analyst rating
• Neutral Sentiment: Analyst opinion remains mixed: Citigroup kept a Buy rating while cutting its target to $41, whereas BNP Paribas Exane retained Neutral and reduced its target to $36. Bernstein also lowered its target to $43 from $50. Citigroup price target
• Negative Sentiment: Adjusted earnings were $0.27 per share, below the $0.29 consensus and last year’s $0.29, as higher operating costs, beef prices and increased protein usage pressured margins. Chipotle Q3 earnings miss estimates
• Negative Sentiment: Management’s outlook calls for only modestly higher sales, leaving investors dependent on the fourth-quarter brisket launch, continued traffic gains and successful cost management to sustain the recovery. The rest of Chipotle’s year hinges on brisket

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc (NYSE: CMG) operates a chain of fast-casual restaurants focused on Mexican-inspired food. Its menu includes burritos, burrito bowls, tacos, quesadillas and salads, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company emphasizes preparing food in its restaurants from ingredients it describes as responsibly sourced, including meats raised with attention to animal welfare and produce from selected suppliers.

Founded by Steve Ells in 1993, Chipotle opened its first restaurant in Denver, Colorado.